Women’s financial inclusion key to economic growth

Nokuthaba Brita Ncube, [email protected]

MICRO-FINANCER Inclusive Financial Services (Private) Limited (IFS) founder and chief executive, Dr Gerald Zhou, has stressed the importance of prioritising women’s financial inclusion, saying empowering them translates to empowering the economy.

Dr Zhou noted that women face more significant challenges in accessing funding compared to men, which limits their potential and hinders their contribution to economic growth.

“Only 25 percent of financial institutions’ portfolios are loans advanced to women, and 75 percent of these financed women are in urban areas. Of the 75 percent, only 15 percent have access to financial services,” he said.

Dr Zhou said there is a need for financial institutions to tailor products that meet the unique needs of women, particularly those in rural areas.

These include educational, healthcare and funeral financing.

He also suggested easing collateral requirements to enhance accessibility.

“We can conduct awareness campaigns in places where women frequently gather, such as baby clinics, market stalls, or irrigation schemes,” he said.

Dr Zhou recommended introducing group lending models and digital financial products to bridge the gap.

Dr Zhou identified key impediments to women’s access to finance, particularly in rural areas, which include lack of collateral as many women in rural areas do not possess title deeds, limiting their ability to secure loans.

“Rural women often have to travel long distances to access financial institutions. Women’s busy schedules, managing families and other responsibilities, restrict their ability to visit financial institutions, and they are often perceived as risk-averse by financial institutions,” he said.

Dr Zhou said women are the backbone of their families and communities hence financing them uplifts entire families and creates a ripple effect in the economy.

“Women prefer working in groups, which increases word-of-mouth referrals for financial institutions.

Women also constitute 52 percent of Zimbabwe’s population, ensuring a stable market share,” he said.
IFS, established in 2012 with its head office in Bulawayo, operates under the supervision of the Reserve Bank of Zimbabwe (RBZ). It has grown to become one of the country’s leading financial institutions, with branches nationwide.

The firm specialises in funding small and medium enterprises (SMEs), smallholder farmers, micro-enterprises, youth and general consumption needs. It also offers leasing finance and advisory services.

IFS has been recognised for its efforts, winning awards from the Zimbabwe National Chamber of Commerce, the Zimbabwe National Chamber of SMEs and the Zimbabwe Institute of Management since 2013 for its support of SMEs and excellence in customer service.